Data Annotation Tools Market size to exceed $25 Bn by 2032

Data Annotation Tools Market size is expected to cross USD 25 billion by 2032, according to a new research report by Global Market Insights Inc.
 

Advancements in AI and ML technologies, which heavily rely on labeled data to deploy self-driving mechanisms. The onboard AI is helped by accurately labeled data to make split-second decisions in challenging driving conditions, preventing serious collisions, and object strikes. Advanced data labeling methods help machine vision systems installed in self-driving cars automatically identify, classify, and respond in accordance with the local traffic infrastructure and pedestrian density. These methods include 2D boxing, polygons, semantic segmentation, and cuboids.
 

Rising use of speech recognition to promote text annotation tools demand

Data annotation tools market from the text segment is predicted to reach USD 10 billion by 2032. Text annotation refers to the methods for tagging and labeling textual material in order to make it understandable by machine learning systems. Text annotation tools annotate important keywords with accurate information in order to increase the effectiveness of NLP algorithms, allowing the creation of voice recognition and text-to-speech applications.
 

As federal agencies and national security authorities keep an eye on potential terrorist threats, textual data annotation is becoming more important for social media text mining. Security organizations can track potential threat subjects and objectionable content referenced in social media handles using deep learning neural networks linked with text annotation tools.
 

Increasing need for manual data annotation

The data annotation tools industry from the manual data annotation segment is forecasted to record over 25% CAGR from 2023 to 2032. With the engagement of human data annotation professionals, who can handle unfamiliar data types and complex datasets more effectively than automated systems, manual data annotation gives exact and accurate data labeling outcomes with lower chances of error. The need for manual data annotation increases significantly for essential applications like medical picture labeling. Owing to the need for a high level of expertise for identifying complex medical scenarios like bone fractures and malignant tissues, manual data annotation demand is growing.
 

Browse key industry insights spread across 269 pages with 268 market data tables and 39 figures & charts from the report, “Data Annotation Tools Market Size By Data Type (Image/Video [Bounding Box, Semantic Annotation, Polygon Annotation, Lines and Splines], Text, Audio), By Annotation Approach (Manual, Automated), By End-Use & Global Forecast, 2023 – 2032” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/data-annotation-tools-market
 

Deployment of AI and ML in the automotive sector

Data annotation tools market from the automotive segment will surpass USD 10 billion by 2032. Automotive companies are using data labeling tools to create AI-powered solutions for connected automobile technologies including speech recognition, Natural Language Processing (NLP), and vehicle-to-vehicle communication (V2X). The advancements in AI and ML technologies, which heavily rely on tagged data to deploy self-driving mechanisms, have fueled the steady transition to complete autonomy. On-board AI can make quick decisions in challenging driving scenarios with the help of accurately labeled data, preventing serious collisions and object strikes.
 

Demand for high-quality data annotation in APAC region

Asia Pacific data annotation tools market is poised to observe more than 35% CAGR till 2032. The widespread acceptance of AI technologies in the area, the rapid expansion of the IT infrastructure, and the rise in the number of data labeling start-ups have all aided in the adoption of data annotation solutions. The demand for high-quality annotated datasets has increased because of the aggressive adoption of AI and ML technologies by nations like China, South Korea, Singapore, Japan, and Australia. Big data and IoT are becoming increasingly popular among APAC businesses, which is anticipated to boost market expansion as companies work to develop automation algorithms to support daily operations.
 

Competitive landscape of the global data annotation tools industry

Major players involved in data annotation tools market include Cogito Tech LLC, Appen Limited, CloudApp, Inc, Alegion Inc., CloudFactory Limited, Dataturks (Walmart Labs), Clickworker GmBH, Defined AI, and Amazon Web Services, Inc. (Amazon.com, Inc), among others. The market is slated to grow with the initiation of new partnerships, collaborations, and joint ventures.
 

For instance, in July 2021, TELUS International, Digital Customer Experience (DCX) solutions provider for global and disruptive brands, has announced the acquisition of Playment, a company that specializes in providing data annotation and computer vision tools and services. Playment has made a name as a pioneer in this area by providing a wide range of customers with specialized solutions for processing 2D and 3D photos, videos, and LiDAR data.